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Annual Report
• Provided advisory services to 111 Oklahoma high-growth start-up companies.
• Assisted 27 companies in raising $35M in private capital.
• Awarded Concept funding to 4 companies through the OCAST Technology Business Finance Program.
• Established a Tulsa SeedStep Angels chapter.
• Partnered with the Greater OKC Chamber to develop the Office of Entrepreneurial Development.
• Reached a milestone through our entrepreneurial development initiatives in providing $1 million in
scholarships, fellowships and cash awards to college students.
• Named winner of the Excellence in Technology Based Economic Development award by the State
Science and Technology Institute.
OUR MISSION
FY2011
Our mission is nurturing entrepreneurs and building high-growth companies in Oklahoma.
We achieve our mission by working directly with entrepreneurs, researchers and compa-nies
to help them develop their technologies, launch and grow new businesses and access
needed capital. Busy entrepreneurs tell us that our model works for them because we not
only provide high quality venture advice, capital and entrepreneurial development, we act
as a portal to other private and public resources — making it easier to access the right in-formation,
expertise and investment at the right time.
i2E’s commitment to transparency in our operations, along with demonstrated evidence
of strong corporate governance and management were recognized in October 2010 when
we received the Certifi cate of Excellence by the national Standards for Excellence Institute.
The certifi cation refl ects fundamental values of honesty, integrity, fairness, respect, trust,
responsibility and accountability that we show in our everyday operations. i2E’s programs
and services, management, fundraising and fi nancial practices were examined in-depth be-fore
the certifi cation was awarded. i2E was one of the fi rst organizations to be certifi ed un-der
the national Standards accreditation program that began in 2006 and only the second
non-profi t in Oklahoma to achieve the certifi cation.
In July 2010, the U.S. Department of Commerce’s Economic Development Administration
(EDA) partnered with i2E to provide a new initiative to expand growth services to area
entrepreneur. The EDA provided a $1 million grant to create the Oklahoma City Technology
business Launch Initiative, which was matched by $1 million from fi ve local partners: the
Greater Oklahoma City Chamber, the City of Oklahoma City, the Oklahoma Medical Re-search
Foundation, the Oklahoma Business Roundtable and the Presbyterian Health Foun-dation.
The $2 million project already has made an impact on area entrepreneurs, with 30
companies receiving venture advisory services through the new initiative.
HIGHLIGHTS
2 1
It’s hard to believe that another year has passed. These have been tough times in our country. Our state has
enjoyed better economic conditions than most, but we’re all certainly in a different era.
At i2E we’ve taken the market conditions seriously and have added resources for area entrepreneurs to start and
grow companies in our state. The capital markets have been unpredictable for the past decade which appears
to be more the norm as opposed to an anomaly. Yet, in Oklahoma we have responded by continuing to create
initiatives that provide access to concept, seed stage and startup capital.
As you browse this Annual Report, consider that i2E had only a dozen years of history behind it during fi scal
2011. Yet our impact on Oklahoma’s community of entrepreneurs and the state’s economy hardly refl ects a com-pany
that had been operating for little more than a year when the new millennium began.
We’ve supplied venture advisory services to more than 1,100 Oklahoma entrepreneurs over the past dozen years.
We provided critical capital to more than 200 companies. We provided training for 900 student entrepreneurs
through the Donald W. Reynolds Governor’s Cup. We added to that legacy with new programs, services, people,
national recognition, and the physical space in which to carry it all out.
Let me describe just a few highlights from last year of those highlights for you:
We launched a program that brought in nationally recognized entrepreneurs and investors to provide insight
on business development issues to Oklahoma entrepreneurs. Our fi rst Entrepreneur-in-Residence workshop,
“Trends in Raising Capital,” was led by our lead Entrepreneur-in-Residence Bill Payne followed by “Building a
High Performance Team.” Entrepreneurs enthusiastically tell us they are fi nding value in the workshops as the
series continues in the new fi scal year.
In a new joint venture with the Greater Oklahoma City Chamber of Commerce, we created the Offi ce of Entre-preneurial
Development. The Offi ce is lead by Josh O’Brien, Director, with the mission to grow resources and
programs for Oklahoma Entrepreneurs.
We added talent and depth to our team in fi scal 2011, beginning with Vice President of Entrepreneur Services
Wayne Embree, who brings years of experience as an investor and fund manager. Kenneth Knoll joined us as
Concept Investments Manager. Michael Kindrat-Pratt, Coordinator of the SeedStep Angels Network, signifi es the
fi rst time Oklahoma has a dedicated individual focused on growing organized angel activity in our State. Round-ing
out our team are Mark Lauinger, Venture Advisor, and Jay Sheldon, eMedia Specialist.
The Venture Advisory Services we provide Oklahoma Entrepreneurs gained new structure during the year, de-signed
to more quickly move emerging entrepreneurs from the pre-startup stage to being positioned for fund-ing
and through to the launch of a product.
We also established a Tulsa chapter of the rapidly growing SeedStep Angels in January. By the end of June, the
group already had screened twelve investment opportunities, seen six presentations, and made its fi rst invest-ment
of $200,000. The Oklahoma City SeedStep Angels continued to build momentum, investing in portfolio
companies during the year, as well.
i2E was named winner of the Excellence in Technology Based Economic Development award by the State Science
and Technology Institute. The award recognized our organization for managing the Technology Business Finance
Program that has provided concept funding to more than 100 startups over the past dozen years.
Perhaps no achievement was more noteworthy in 2011 than news that i2E had been awarded the Seal of Excel-lence
by the national Standards of Excellence Institute. The Seal of Excellence represents i2E’s efforts to ensure
operational transparency along with evidence of strong corporate governance and management.
These are but a few of the highlights from an incredibly productive year. We look forward to continuing to serve
Oklahoma and our state’s entrepreneurs as i2E enters our teenage years and our programs continue to grow.
2 3
i2E takes a team approach in providing
advisory services to Oklahoma entrepre-neurs,
bringing the deep business experi-ence
of our Business Analyst, Venture Ad-visors,
Investment Team and Executives in
Residence to help them focus on the steps
needed for the new business to fl ourish.
In the past year, we launched a novel Entre-preneur-
in-Residence program in which na-tionally
recognized business development
and investment experts deliver meaningful
information to Oklahoma entrepreneurs
through a series of workshops and one-on-one
mentoring.
We also added a Sales Executive-in-Res-idence,
which provides expertise and as-sistance
in developing a sales channel for
entrepreneurs. We have worked with 500
new high-growth ventures across Oklaho-ma
over the 13-year history of our company.
FY2011 Reported
Economic Impact
• $89M in annualized revenues
• 79% of revenues obtained outside the state
• $49M in annualized payroll
• 681 current full time equivalent employees
• Average wage of $65,203
• 65 patents fi led and 15 issued
Venture Advisory
Energy &
Environmental
Advanced
Materials
Other
Life
Sciences
IT/Software
23%
11%
43%
6%
17%
OKC
MSA
239
157
104
Tulsa
MSA
Balance
of State
They are true small
businesses, with 78%
employing 10 people
or less and averaging
$65,203 in annual
wages, paying 75%
higher than the state
average of $37,274
Portfolio Companies
by Industry
Portfolio Companies
by Geography
i2E’s team of venture advisors and investment professionals
mentored 111 Oklahoma startup companies over the past
year that are working to provide high-paying jobs, bring new
revenue to the state and create wealth as they build
an innovation-based economy.
$37,274
$65,203
Oklahoma
average
i2E portfolio
4 5
Concept
Profi t
Seed
Start-up
Early
Break Even
2011 Reported Sales
Distribution
International
Oklahoma 21%
9%
70%
Domestic
Our funding resources, concept, seed and angel,
are targeted to help companies move from one
development stage to the next.
From concept through growth, our team of
investment professionals position Oklahoma
companies for funding to match the appropri-ate
capital source for their development stage.
In FY2011, we helped position
36 entrepreneurial companies for
funding with 27 of those, across all
fi ve stages of development, obtain
$35.1 million in private equity.
Portfolio Companies Positioned for
Funding by Development Stage
Concept 8
Seed 9
Start-up 9
Early 6
Growth 4
Maturity
i2E’s portfolio of high-growth companies is producing
technology-related products or services targeted at large
domestic and international markets. Our client companies
continue to report that almost 80% of their revenue is
generated from sales outside Oklahoma. That brings revenue
into the state and creates jobs and wealth for Oklahomans.
2011 Reported Job Growth
2008 2009 2010 2011
State Average 1.4% -1.9% -0.1% 1.2%
i2E Portfolio Companies 26% 36% 20% 22%
6 7
Growth
Promising new technologies were spotlighted
and thousands of dollars in prize money
were awarded in the 2011 Donald W.
Reynolds Governor’s Cup collegiate business
plan competition, but the most important
accomplishment from the competition was its
impact on Oklahoma’s future entrepreneurs.
More than 150 college students from college
campuses across the state took their fi rst
steps down the entrepreneur’s pathway in
the 2011 competition. They formed teams,
researched the market, wrote a business plan
and then pitched it before a panel of investors
and Oklahoma business leaders.
For some, prize money in excess of $100,000
was reward enough for the challenges of the
competition. For others, the awards dinner
represented a momentary celebration as they
prepare to begin a life of building high growth
startup businesses.
Entrepreneurial Development
First place teams in both divisions of the
Oklahoma competition won $20,000
each, while second place earned $10,000
each and third place $5,000 each. They
described new medical technologies
to treat and monitor epilepsy and heart
disease, as well as diagnose infl uenza,
recover oil and gas more effi ciently and
manage complicated land leasing issues.
The Governor’s Cup is underwritten by
the Donald W. Reynolds Foundation and
local sponsors. It is managed by i2E.
8 9
First Place: $20,000
First Place Tri-State: $25,000
CerebroGen Pharmaceuticals
University of Oklahoma
CerebroGen is developing an antibody-based
drug therapy to treat epilepsy.
Building on more than a decade of research,
the company’s drug removes a recently
discovered cause of epilepsy unaddressed
by existing treatments With a regulatory
approval strategy focused on reaching
the market quickly through orphan status,
CerebroGen is committed to bringing a
much-needed therapeutic to Juvenile
Epileptics, followed by a product indicated
for the broader market.
Faculty Advisor: Elaine Hamm
Team Leader: Benjamin West
Team Members: Chase Roberts,
Tobi Olusola, Majed Gharfeh
2011 GOVERNOR’S CUP WINNERS
GRADUATE DIVISION
GRADUATE DIVISION
Second Place: $10,000 IASO
University of Tulsa
Faculty Advisor: Michelle Witt
Team Leader: Stephen Fain
Team Members: Ryan Eslicker, Nathan Garrett
IASO has developed “SPI Gel,” an environmentally
friendly, silica-based enhanced oil recovery system
that seals off inefficient reservoir zones, allowing more
trapped oil to be recovered. Well operators that use
SPI Gel can expect up to a 50 percent increase in daily
oil recovery and decreased expenses. IASO’s mission
is to provide oil recovery systems that allow operators
to conveniently “get more oil” while being safe for
personnel and the environment.
Third Place: $5,000 TerraCoda Software
Oklahoma City University
Faculty Advisor: Kewei Sha
Team Leader: Adele Rehm
Team Members: Alexis Caron, Bridget Poputa-Clean
TerraCoda provides real time enterprise land
management, geo-spatial analysis tools, and
report generation and mapping solutions for the
land, energy, realty, right-of-way procurement,
and municipal markets. TerraCoda’s Landman 360
software will provide full end-to-end visibility into
the leasing process by providing effective tools
that manage the leasing lifecycle. User-friendly
technology combines communication, reporting,
and cost management tools within TerraCoda’s
Software-as-a-Service (SaaS) solution, which will
reduce errors and increase efficiency through real
time reporting and management tools that allow
users to deliver a project on time and on budget.
Entrepreneurial Development
UNDERGRADUATE DIVISION
First Place: $20,000
LumiDX
University of Oklahoma
Faculty Advisor: Jim Wheeler
Team Leader: Amy Henderson
Team Members: Ashley Zumwalt, Mimi Nguyen,
Kaelyn Lu
LumiDX is an infl uenza diagnostics company that offers
ChemLight, a fast, highly accurate tool that harnesses
chemiluminescent technology to offer a cutting edge
innovation in the point-of-care diagnostic market. Lu-miDX
aims to be fi rst to market with diagnostic tests
that are simple, accurate and fast enough to provide
results at the point-of-care.
Second Place: $10,000
Vita Rhythm
University of Oklahoma
Faculty Advisor: Blake Gudgel
Team Leader: Jessica Wills
Team Members: Brett Gudgel, Brittany Myers, Erikka
Roberts
Vita-Rhythm has developed a medical device to treat
heart failure. The AdvaHeart is a left ventricular assist
device that helps eject blood from the left ventricle
of a weakened heart. It is smaller and more easily and
safely implanted in patients.
Third Place: $5,000
Dreamcatcher Services, LLC
Oklahoma City University
Faculty Advisor: Robert Greve
Team Leader: Michael Roselle
Team Members: Feng Dong, David Scott,
Patrick Kennedye
Dreamcatcher Services, LLC has created technology
to apply video-EEG monitoring capabilities to the
medical diagnostic area of epilepsy. The company
has at its disposal a critical mass of talent and indi-viduals
necessary for the effi cient, speedy and prof-itable
application of video-EEG technologies in the
target market.
10 11
OG&E Positive Energy Award
went to Brandon Mikael and
Matthew Huber from the Univer-sity
of Oklahoma, with the assis-tance
of faculty advisor Lowell
Busenitz, based on their work
writing a plan around a tension
and gauge device that saves
time and money for utility com-panies.
The OG&E Positive En-ergy
Award supports Oklahoma
college students in developing
a business plan based on a tech-nology
product in the area of al-ternative
energy, energy storage,
unique energy generation, en-ergy
conservation technologies,
new delivery methodologies, en-hanced
energy controls, and en-ergy
infrastructure optimization
techniques.
Al Tuttle Business Incubation
Award winner TerraCoda Soft-ware
from Oklahoma City Uni-versity.
The award brings a year
of offi ce space and business ser-vices
in one of four participating
Oklahoma business incubators
for the graduate division team
in which at least one of the stu-dents
plans to go forward with
the business.
Oklahoma Business Roundta-ble
Paulsen Scholarships were
awarded to Ashley Zumwalt from
the University of Oklahoma and
Faith Garlington from Oklahoma
State University. The Paulsen
Award, which provides a $5,000
scholarship that can be used to
pay tuition at any Oklahoma col-lege
or university, was named in
honor of Don Paulsen, long-time
President of the Oklahoma Busi-ness
Roundtable. Seven-year impact:
• 26 campuses from across the state
• 950 college students
• 290 innovative ideas
• $1 million-plus in cash awarded
• $40,000 in scholarships
• $85,240 in fellowships
Other 2011 Governor’s Cup Opportunities
In fi scal 2011, Governor’s Cup participants
Entrepreneurial Development
competed for nearly $200,000 in cash,
$10,000 in scholarships and over $40,000
in fellowships and other opportunities.
12 13
Laura Medcalf, senior Computer Science major
at East Central University
Company: Mintiva
Project: Laura managed Mintiva’s social media market-ing
campaigns and provided return-on-investment
analysis on those efforts.
Audrey Metzier, MBA Candidate at Oklahoma City University
Company: Otologic Pharmaceutics
Project: Audrey performed capital development for
Otologic along with project management on competitive
analysis and creation of compelling business presentations.
Anthony Moorehead, MBA candidate at
Oklahoma City University
Company: i2E, Inc.
Project: As a Spring 2011 Business Fellow for i2E,
Anthony worked with i2E’s business advisory and
operations teams on business plan review and
consulting and new i2E initiative projects.
Lucas Rice, junior Industrial Engineering major at
the University of Oklahoma
Company: i2E, Inc.
Governor’s Cup team: UniPHI, 2010
Project: An Investment Fellow for i2E, Lucas worked
with the investment team on fi nancial modeling, market
and competitive analysis and business plan revisions.
Orgil Batsaikhan, MBA and Master of Finance
candidate at the University of Tulsa.
Company: Consolidated Networks Corp.
Project: Orgil developed statistical models to optimize
Consolidated Networks’ technical support services to
school districts and government agencies across the
United States.
Alexis Caron, MBA graduate at Oklahoma City University
Company: Consolidated Networks Corp.
Governor’s Cup teams: Lenio Medical, 2010;
TerraCoda Software, 2011
Project: Alexis develops Consolidated Networks’ partner
relationship program, recruiting software and content pro-viders
for the company’s engineered network solutions.
Arun Kumar Devarakonda, MBA graduate at
Oklahoma City University
Company: WeGoLook.com
Governor’s Cup team: CrowdLure, 2011
Project: Arun assisted WeGoLook.com on launching,
tracking and evaluating multiple new social media
marketing initiatives.
Howard Haines, Ph.D. candidate in Entrepreneurship at
the University of Oklahoma
Company: i2E, Inc.
Project: Howard assisted i2E staff with reporting, pro-cess
design and providing venture advisory services to
its clients.
The i2E Fellows Program was redesigned and expanded as part of the OKC Technology Busi-ness
Launch Initiative funded by the federal Economic Development Administration, the
Greater Oklahoma City Chamber, the Oklahoma Business Roundtable, the Oklahoma Medical
Research Foundation, the Presbyterian Health Foundation and the City of Oklahoma City.
The program provided nine paid Fellowships to eight students, two Spring Fellowships and
seven Summer Fellowships, during 2011. The two Spring i2E Fellows included one MBA stu-dent
from Oklahoma City University and one undergraduate student from the University of
Oklahoma. The seven Summer i2E Fellows were comprised of fi ve client-hosted Fellows and
two i2E-hosted Fellows representing four Oklahoma universities. The Summer i2E Fellows
included two undergraduate students, four MBA students and one PhD candidate including
international students from France, Mongolia and India.
14 15
i2E put on a new online face in fi scal 2011 when it launched
a completely redesigned website that invited users in with
bright graphics, new features and easy navigation.
The site at www.i2E.org added expanded information about
i2E’s many services provided to entrepreneurs, video inter-views
and a new blog to i2E’s presence on the Web.
The new website provides visitors with plenty of reasons to
linger, with in-depth sections on our venture advisory ser-vices,
access to capital and entrepreneurial development.
Users can even read every page of i&E magazine, both cur-rent
edition and back issues, as well as annual reports and
The Entrepreneur’s Path: A handbook for high-growth
companies, which was written and published by i2E during
the past year.
The new i2E blogging presence also invites users to return
frequently to the site. The i2E blog offers insight into pro-grams,
clients and the current state of entrepreneurship,
among other topics that were featured during the year.
Bloggers included i2E team members, i2E Fellows and En-trepreneurs
in Residence, who produced 81 posts in little
more than six months after it was launched in December.
The i2E blog pushed us deeper into the use of social me-dia
during the fi scal year, complementing our active Twit-ter
and Facebook pages. The Twitter feed was often used
to link users back to blogs or news articles posted on the
i2E website. By the end of the fi scal year, the number of
people following i2E on Twitter approached 300.
Over on the Donald W. Reynolds Governor’s Cup page on Face-book,
the number of users who “liked” the page grew rapidly,
with more than 450 followers by the end of fi scal 2011.
i2E’s media activity was not limited to an online presence,
however. We wrote or pitched client stories to media that
resulted in 58 articles published on 23 separate clients in
Oklahoma newspapers during the year. An i2E client also
was highlighted in a USA Today story that profi led people
who left California to do business in Oklahoma.
In addition, another 62 articles were published with news
about i2E initiatives, the Governor’s Cup, i2E Fellows pro-gram
and other related activities.
There is a bottom line to all the various routes that i2E
has taken to establish a presence in both traditional and
social media: We are telling the stories of our clients and
of i2E as we work tirelessly to fulfi ll our mission to nurture
home grown economic development and build wealth in
Oklahoma.
Media and Marketing
16 17
Five of the six Oklahoma tech companies that received
venture capital investment during FY 2011 were i2E
Clients, receiving 90% of the total amount raised.
Angel
Venture Capital
Strategic Partners
Percent Source
of Funding
% of 12 mo.
capital raised
69%
19%
13%
28%
53%
22%
2011 data showed a signifi cant shift in
sources of capital from 2010. Capital
raised from angel investors more than
doubled to 53% while capital raised
from VC investors fell from 65% to 19%.
i2E has been a primary source of concept, seed stage and start-up capital for Oklahoma’s high-growth
companies for more than a decade. Through the state-funded Concept Fund and the
Oklahoma Seed Capital Fund, i2E has provided critical capital to more than 111 early stage ventures
since 1998, ensuring that fi nancing was in place to help them weather the pre-revenue funding gap.
i2E also manages the SeedStep Angels, a network composed of successful Oklahomans who seek
the opportunity to contribute to the success of new entrepreneurs while receiving a high rate of
return on their investment.
Access to Capital
i2E’s portfolio attracts investment to the re-gion
with more than $650 million in funding.
Approximately $580 million of this has been
in private investment from venture capital,
angels and strategic investors participating
in more than 345 fi nancing rounds.
18 19
Since 1999, a total of 107 Oklahoma companies have received
over $10 million in critical concept funding through the OCAST
Technology Business Finance Program.
The fund has also proven to be a success in collecting
and reinvesting repayments. Nearly $4 million, or 37%, of
capital available for new investments has been provided by
repayments from past recipients.
37%
Over its history,
Concept funding has
helped companies
subsequently raise
$253 million in private
capital, creating a
leverage ratio of
29:1 for the state’s
investment
Concept Funding
In Business
All Concept Fund Companies
Concept Funding $10,194,877
In Business $142,377,710
All Concept Companies $253,218,948
Concept Fund
Energy &
Environmental
Advanced
Materials
Other
Life
Sciences
IT/Software
7%
7%
10%
25%
51%
107
Companies Funded
Private Equity Investment
1999-2011
Portfolio Companies by Industry
1999-2011
Entrepreneurs Funding
Entrepreneurs
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
Access to Capital
20 21
Concept Fund
2011 Reported Economic Impact
• $33M in annualized revenues
• 86% of revenues outside state
• $24M in annualized payroll
• 324 full time employees equivalent
• Average wage of $68,910
• 34 patents fi led, 11 issued
We added to the long history of providing critical capital to
Oklahoma’s early stage ventures last year by fi nancing four
companies. The funding brings the total number of companies
receiving funds to 105 since the state-appropriated fund began
operating in 1998. Concept funded companies are creating
new intellectual property, with 163 patents issued and 71 new
products developed.
2011 CONCEPT INVESTMENTS
Hassco is an Oklahoma City-based
Medical-Device startup develop-ing
new medical devices for lapa-roscopic
procedures. The company
currently holds a provisional util-ity
patent on its fl agship device, the
Robotic Articulating Laparoscopic
System (RAL SYSTEM) which will
allow for improved range of motion
and faster, more effective surgeries.
In the US alone, there are approxi-mately
9,500,000 procedures per-formed
annually via Minimally Inva-sive
Surgeries (MIS) while the global
MIS device and instrument market is
estimated at $18.5 billion annually.
Failsafe Hazmat is a Tulsa-based
startup company developing soft-ware
to assist and support companies
that ship hazardous products and
materials. Among a daily 800,000
hazmat shipments, approximately
300,000 are classifi ed as posing ex-treme
risk. In a single year, there were
19,277 US hazmat incidents resulting
in $72,600,000 in property damage,
not including the related litigation
costs. The Failsafe Hazmat software
is designed to keep companies com-pliant
with all domestic and interna-tional
shipping regulations and to
help avoid costly accidents.
Capacity Sports is a Tulsa-based
startup developing mobile concus-sion
management software, begin-ning
with the iOS (iPhone) platform,
to evaluate concussion symptoms in
athletes and reduce the risk of per-manent
brain injury in sports. Driven
by heightened concussion aware-ness,
the Capacity Sports application
will evaluate balance, motor function,
reaction time and memory to better
manage athlete screening and pro-vide
improved information for safe
return to play decisions.
$37,274
$68,910
Oklahoma
average
i2E portfolio
TokenEX is a Tulsa-based Enterprise
Data Security company that helps
merchants reduce their risk and the
cost of Payment Card Industry (PCI)
compliance, thereby enabling them
to focus on their core retail compe-tency,
not Information Technology.
Tokenization is a relatively new con-cept
where a “token” is a surrogate
value that replaces the payment card
number, but unlike encryption, the
token cannot be used to decipher
the real card number. While TokenEx
is not the only provider of tokeniza-tion,
the company has a proprietary
process that provides tokens at the
front-end of the merchant’s opera-tion,
thereby removing a greater por-tion
of the merchant’s systems from
PCI compliance requirements.
Access to Capital
22 23
The Seed Capital Fund provides Oklahoma entre-preneurs
with the capital and support needed to
move a technology from concept to product launch.
The Fund has invested almost $4.4 million in nine
companies. These companies attracted more than
$25 million of co-investment.
Seed Capital Fund
2011 Reported
Economic Impact
• 50 full time employees
• 35% job growth rate
• Average Annual wage of $93,466
• 10 patents fi led, 4 issued
• $3M in revenue
• Nearly $7M in federal grants
2011 SEED FUND INVESTMENTS
Expert TA is a Tulsa-based educational software company
that has developed a powerful partial credit grading sys-tem
for engineering and science based collegiate course
work. The company provides a web-based homework as-sessment
application to engineering, physics, and math
departments.
Real Time Rehab, LLC is a Tulsa-based company servicing
clinicians, physical therapists, chiropractors, sports reha-bilitation
and occupational specialists, by increasing their
ability to improve a patient’s recovery from injury or illness.
RTR has created the industry’s fi rst proprietary Software
as a Service that provides the clinician with both high qual-ity
video and printed materials that instruct a patient on
how to perform exercises at home.
2011 FOLLOW-ON INVESTMENTS
2011 FOLLOW-ON INVESTMENTS
Altheus Therapeutics, Inc. is located in Oklahoma City
and is working to develop therapies to treat the two most
common forms of infl ammatory bowel disease that affl icts
about 1.2 million Americans. Ulcerative colitis and Crohn’s
Disease, are chronic lifelong conditions which signifi cantly
impact the quality of life. The Altheus therapy combines
two FDA approved drugs in a novel way and has been
shown to be highly effective in animal models.
Emotion Media, LLC (EMM), is based in Tulsa and provides
media services to the $7 billion dollar professional pho-tography
market. EMM has developed a proprietary DVD
technology that gives photographers a higher quality, less
expensive way to present and sell their photos. DVDs are
created in a fraction of the time (minutes vs. hours) using
technology automation and include a professional, pro-duction
quality media presentation with music, motion,
and special effects.
Exerbotics, LLC, is located in Tulsa and manufactures ad-vanced
technology equipment and devices for commercial
fi tness applications such as: Collegiate/Professional Ath-letics,
Physical Medicine Rehabilitation and Occupational/
Industrial Medicine. This technology has been engineered,
manufactured and tested in Oklahoma. Exerbotics’ patent
pending technologies are the only real advancement in re-sistance
strength training equipment – ever.
Access to Capital
24 25
SeedStep Angels, founded in 2009
as a source of risk capital for start-up
Oklahoma companies, moved forward
in 2011 with growth, best practice, and
investment initiatives.
January 2011 marked the kickoff
event for the Tulsa chapter of the
SeedStep Angels. Marianne Hudson,
the Executive Director of the Angel
Capital Association, traveled to Tulsa
to give a keynote speech to a dozen
interested Angel investors regarding
the state of the Angel investing
industry. The group formally met
for the fi rst time in February. It has
screened 12 companies, seen six
companies present, and has made an
investment of $200K in DermaMedics.
In Oklahoma City, the focus shifted
to integrating national Angel best
practices within the group. The group
had the opportunity to attend private
events with out-of-state experts – Bill
Botts, Bill Payne and Tom Churchwell
– all of whom are successful
entrepreneurs or venture capitalists.
The SeedStep Angels group also
focused on building relationships with
regional Angel groups surrounding
Oklahoma. These relationships will
be used to syndicate Oklahoma
deals to outside investor networks
to properly aggregate capital in
investment rounds for Oklahoma
companies. Good relationships with
other Angel groups are also key to
sharing best practices and to avoiding
the mistakes other groups have made
in the past. Initially, SeedStep Angels
has been in contact with the Midwest
Venture Alliance out of Wichita,
Kansas. In 2011, the Angels screened
23 companies, saw 10 companies
present, and made three investments.
In 2012, the group looks forward
to continuing to work with the Angel
Capital Association and pursuing best
practices by instituting a formal group
due diligence process, creating a
membership committee, and growing
through recruitment of Angels in rural
areas of Oklahoma.
SeedStep Angels FY2011 INVESTMENTS
DermaMedics has developed and
markets topical anti-inflammatory
products to prevent burns in cancer
patients and patients undergoing cos-metic
procedures, as well as products
to treat a variety of common skin dis-eases
such as psoriasis, acne, eczema
and rosacea, and skin aging.
Expert TA has created Web-based home-work
assessment software that is capable
of human-like grading of complex ques-tions
like those found in engineering,
physics and mathematics courses.
Search and Clear had developed a Web-based
collaborative software platform
for any type of business that depends
upon collaboration and communica-tion,
such as the entertainment industry,
health care, attorneys, information tech-nology,
fi nancial institutions and gov-ernment
contractors.
Access to Capital
Investment 1
Investments 3 26 27
Institutional Governance
i2E strives to have the highest standards of corporate
governance practice and ethical conduct by all
board members and staff. Consistent with those
intentions, i2E has adopted the following charters for
its Board of Directors and Board Committees:
Board of Directors Charter of Governance: Sets and
ensures fi delity to i2E’s mission. Reviews and approves
organizational strategy, goals, plans, and budgets. In
addition the board is charged with establishing policies,
approving major engagements in public policy, and ensuring
that management systems are in place for compliance.
Executive Committee Charter: The function of the
Executive Committee is to exercise powers of the Board
of Directors on matters which arise between regularly
scheduled Board meetings or when it is not practical
or feasible for the Board to meet. This Committee also
reviews and monitors all compensation, benefi t and
human resource policy matters, plus monitors and
evaluates the performance of the corporation’s CEO.
Finance and Audit Committee Charter: The primary
purpose of this Committee is to assist the Board of
Directors in fulfi lling its fi scal oversight responsibilities. It
serves as an independent and objective party to monitor
the integrity ofthe Corporation’s fi nancial accounting
and reporting processes and internal control system.
Nominating and Governance Committee Charter:
The Committee assists the Board in developing and
overseeing the Corporation’s policies and procedures
regarding Board composition and recommendations
of candidates for nomination to the Board.
Investment Committee Charters: The Board engages
two Investment Committees, the Technology Business
Finance Program Committee and The Oklahoma
Seed Capital Fund Investment Committee to consider
and approve applications for investment within the
requirements of the investment programs.
Code of Ethics and Confl ict of Interest
The i2E Code of Ethics and Confl ict of Interest Policy outlines
principles and standards of honesty and ethical accountability
by which all board members and employees agree to
adhere to with respect to the company and its associates.
Board Evaluation
The Board completes a board evaluation survey
annually. The results of the evaluation are compiled and
presented to the full Board for review and discussion.
BOARD OF DIRECTORS
Roy Williams, Chairman, Greater Oklahoma City Chamber
Michael LaBrie, Secretary, McAfee & Taft
Jonathan Adamson, Argonaut Private Equity
Howard Barnett, Jr., OSU - Tulsa and OSU-CHS
Leslie Batchelor, The Center for Economic Development Law
James Bode, Bank of Oklahoma, N.A.
Michael Carolina, OCAST
Bob Craine, TSF Capital, LLC
Steve Cropper
Phil Eller, Eller Detrich, P.C.
Suzette Hatfi eld, Crawley Ventures
David Hogan, HoganTaylor, LLP
Phil Kurtz, Benefi t Informatics
Hershel Lamirand, III, Oklahoma Health Center Foundation
Merl Lindstrom, ConocoPhillips, Inc.
Dan Luton, OCAST
Scott Meacham, Crowe & Dunlevy
Fred Morgan, The State Chamber
Mike Neal, Tulsa Metro Chamber
David Pitts, Stillwater National Bank
Mark Poole, Summit Bank
Stephen Prescott, OMRF
Darryl Schmidt, BancFirst
Sheri Stickley, OKBio
Wes Stucky, Ardmore Industrial Development Authority
Dick Williamson, TD Williamson, Inc.
Duane Wilson, LDW Services, LLC
Don Wood, Norman Economic Development Coalition
i2E TEAM
Tom Walker, President and CEO
David Thomison, VP of Investments
Rex Smitherman, VP of Operations
Sarah Seagraves, VP of Marketing
Wayne Embree, VP of Entrepreneur Services
Tom Francis, Director of Investment Funds
Josh O’Brien, Director of Entrepreneurial Development
David Daviee, Director of Finance
Richard Rainey, Venture Advisor
Mark Lauinger, Venture Advisor
Sonja Wilson, CFO-in-Residence
Scott Thomas, IT Manager
Grady Epperly, Marketing Manager
Kenneth Knoll, Concept Investments Manager
Michael Kindrat-Pratt, SeedStep Angels Coordinator
Casey Harness, Business Analyst
Jim Stafford, Communications Specialist
Jay Sheldon, eMedia Specialist
Katelynn Henderson, Event Specialist
Cindy Williams, Investment Assistant
Jennifer Buettner, Executive Assistant
28
13%
14%
12%
3%
58%
FY2011 Revenues
Other Revenues
OKC Technology Business
Launch Initiative
OCAST Funding
Governor's Cup
Sponsorships & Grants
Fund Management Fees
FY2011 Expenses
12%
12%
67%
i2E Seed Capital, LLC
Other Expenses
Commercialization Services
Donald W. Reynolds Governor’s Cup
Concept Financing Program
6%
3%
Sources of State Funding: OCAST provides funding for i2E Commercialization Services,
the TBFP Concept Fund and is the primary investor in the Oklahoma Seed Capital Fund.
Statement of Financial Position FY2011 FY2010
Assets
Current Assets
Cash & Cash Equivalents 219,589 295,646
Accounts Receivable 191,895 271,695
Certifi cates of Deposit 697,001 474,674
Total Current Assets 1,108,485 1,042,015
Furniture, Fixtures and Equipment, Net 43,580 50,557
Investment in Oklahoma Seed Capital Fund 78,822 78,822
Other Assets 4,551 4,551
Total Assets 1,235,438 1,175,945
Liabilities and Net Assets
Current Liabilities
Accounts Payable 8,474 30,994
TBFP Reinvestment Fund Payable 120 106
Accrued Liabilities 51,462 42,172
Deferred Revenue 63,570 –
Total Current Liabilities 123,626 73,272
Accrued Liabilities, Noncurrent 4,551 4,551
Total Liabilities 128,177 77,823
Net Assets
Unrestricted 312,369 283,418
Unrestricted - Board Designated 794,892 814,704
Total Unrestricted Net Assets 1,107,261 1,098,122
Total Liabilities and Net Assets 1,235,438 1,175,945
i2E FY2011 FINANCIAL REPORTS
Statement of Activities FY2011 FY2010
Revenues
OCAST Funding 1,812,821 2,074,782
Governor's Cup Sponsorships & Grants 402.299 438,625
Fund Management Fees 375,000 220,093
Grants – 46,864
OKC Technology Business Launch Initiative 423,968 –
Other Revenues 101,866 120,784
Total Revenues 3,115,974 2,901,148
Expenses
Commercialization Services 2,081,411 1,852,680
Concept Financing Program 194,487 203,987
i2E Seed Capital, LLC 375,061 220,024
i2E Management Company, LLC 310 28,673
Donald W. Reynolds Governor's Cup 374,917 379,933
Other Expenses 80,649 137,514
Total Expenses 3,106,835 2,822,811
Excess of Revenues Over Expenses 9,139 78,337
Net Assets at Beginning of Year 1,098,122 1,019,785
Net Assets at End of Year 1,107,261 1,098,122
i2E is a 501(c)(3) private not-for-profi t corporation focused on wealth creation by growing the technology-based entrepreneurial economy in Oklahoma. We
are able to accomplish our mission through support from the Oklahoma Center for the Advancement of Science and Technology (OCAST). We would like to
thank OCAST, the state of Oklahoma, and all of our partners for their ongoing fi nancial support. The success of i2E and our client companies also relies on the
contributions of many individuals and organizations who invest their time, expertise, and capital in Oklahoma’s start-up technology companies.
The economic impact statistics used throughout this report are based on client company responses to i2E’s annual impact survey and internal database.
840 Research Parkway • Suite 250 • OKC, OK 73104
2 West Second Street • Suite 210 • Tulsa, OK 74103
800.337.6822 • www.i2E.org
facebook.com/OKGOVCUP
twitter.com/i2E_Inc

Annual Report
• Provided advisory services to 111 Oklahoma high-growth start-up companies.
• Assisted 27 companies in raising $35M in private capital.
• Awarded Concept funding to 4 companies through the OCAST Technology Business Finance Program.
• Established a Tulsa SeedStep Angels chapter.
• Partnered with the Greater OKC Chamber to develop the Office of Entrepreneurial Development.
• Reached a milestone through our entrepreneurial development initiatives in providing $1 million in
scholarships, fellowships and cash awards to college students.
• Named winner of the Excellence in Technology Based Economic Development award by the State
Science and Technology Institute.
OUR MISSION
FY2011
Our mission is nurturing entrepreneurs and building high-growth companies in Oklahoma.
We achieve our mission by working directly with entrepreneurs, researchers and compa-nies
to help them develop their technologies, launch and grow new businesses and access
needed capital. Busy entrepreneurs tell us that our model works for them because we not
only provide high quality venture advice, capital and entrepreneurial development, we act
as a portal to other private and public resources — making it easier to access the right in-formation,
expertise and investment at the right time.
i2E’s commitment to transparency in our operations, along with demonstrated evidence
of strong corporate governance and management were recognized in October 2010 when
we received the Certifi cate of Excellence by the national Standards for Excellence Institute.
The certifi cation refl ects fundamental values of honesty, integrity, fairness, respect, trust,
responsibility and accountability that we show in our everyday operations. i2E’s programs
and services, management, fundraising and fi nancial practices were examined in-depth be-fore
the certifi cation was awarded. i2E was one of the fi rst organizations to be certifi ed un-der
the national Standards accreditation program that began in 2006 and only the second
non-profi t in Oklahoma to achieve the certifi cation.
In July 2010, the U.S. Department of Commerce’s Economic Development Administration
(EDA) partnered with i2E to provide a new initiative to expand growth services to area
entrepreneur. The EDA provided a $1 million grant to create the Oklahoma City Technology
business Launch Initiative, which was matched by $1 million from fi ve local partners: the
Greater Oklahoma City Chamber, the City of Oklahoma City, the Oklahoma Medical Re-search
Foundation, the Oklahoma Business Roundtable and the Presbyterian Health Foun-dation.
The $2 million project already has made an impact on area entrepreneurs, with 30
companies receiving venture advisory services through the new initiative.
HIGHLIGHTS
2 1
It’s hard to believe that another year has passed. These have been tough times in our country. Our state has
enjoyed better economic conditions than most, but we’re all certainly in a different era.
At i2E we’ve taken the market conditions seriously and have added resources for area entrepreneurs to start and
grow companies in our state. The capital markets have been unpredictable for the past decade which appears
to be more the norm as opposed to an anomaly. Yet, in Oklahoma we have responded by continuing to create
initiatives that provide access to concept, seed stage and startup capital.
As you browse this Annual Report, consider that i2E had only a dozen years of history behind it during fi scal
2011. Yet our impact on Oklahoma’s community of entrepreneurs and the state’s economy hardly refl ects a com-pany
that had been operating for little more than a year when the new millennium began.
We’ve supplied venture advisory services to more than 1,100 Oklahoma entrepreneurs over the past dozen years.
We provided critical capital to more than 200 companies. We provided training for 900 student entrepreneurs
through the Donald W. Reynolds Governor’s Cup. We added to that legacy with new programs, services, people,
national recognition, and the physical space in which to carry it all out.
Let me describe just a few highlights from last year of those highlights for you:
We launched a program that brought in nationally recognized entrepreneurs and investors to provide insight
on business development issues to Oklahoma entrepreneurs. Our fi rst Entrepreneur-in-Residence workshop,
“Trends in Raising Capital,” was led by our lead Entrepreneur-in-Residence Bill Payne followed by “Building a
High Performance Team.” Entrepreneurs enthusiastically tell us they are fi nding value in the workshops as the
series continues in the new fi scal year.
In a new joint venture with the Greater Oklahoma City Chamber of Commerce, we created the Offi ce of Entre-preneurial
Development. The Offi ce is lead by Josh O’Brien, Director, with the mission to grow resources and
programs for Oklahoma Entrepreneurs.
We added talent and depth to our team in fi scal 2011, beginning with Vice President of Entrepreneur Services
Wayne Embree, who brings years of experience as an investor and fund manager. Kenneth Knoll joined us as
Concept Investments Manager. Michael Kindrat-Pratt, Coordinator of the SeedStep Angels Network, signifi es the
fi rst time Oklahoma has a dedicated individual focused on growing organized angel activity in our State. Round-ing
out our team are Mark Lauinger, Venture Advisor, and Jay Sheldon, eMedia Specialist.
The Venture Advisory Services we provide Oklahoma Entrepreneurs gained new structure during the year, de-signed
to more quickly move emerging entrepreneurs from the pre-startup stage to being positioned for fund-ing
and through to the launch of a product.
We also established a Tulsa chapter of the rapidly growing SeedStep Angels in January. By the end of June, the
group already had screened twelve investment opportunities, seen six presentations, and made its fi rst invest-ment
of $200,000. The Oklahoma City SeedStep Angels continued to build momentum, investing in portfolio
companies during the year, as well.
i2E was named winner of the Excellence in Technology Based Economic Development award by the State Science
and Technology Institute. The award recognized our organization for managing the Technology Business Finance
Program that has provided concept funding to more than 100 startups over the past dozen years.
Perhaps no achievement was more noteworthy in 2011 than news that i2E had been awarded the Seal of Excel-lence
by the national Standards of Excellence Institute. The Seal of Excellence represents i2E’s efforts to ensure
operational transparency along with evidence of strong corporate governance and management.
These are but a few of the highlights from an incredibly productive year. We look forward to continuing to serve
Oklahoma and our state’s entrepreneurs as i2E enters our teenage years and our programs continue to grow.
2 3
i2E takes a team approach in providing
advisory services to Oklahoma entrepre-neurs,
bringing the deep business experi-ence
of our Business Analyst, Venture Ad-visors,
Investment Team and Executives in
Residence to help them focus on the steps
needed for the new business to fl ourish.
In the past year, we launched a novel Entre-preneur-
in-Residence program in which na-tionally
recognized business development
and investment experts deliver meaningful
information to Oklahoma entrepreneurs
through a series of workshops and one-on-one
mentoring.
We also added a Sales Executive-in-Res-idence,
which provides expertise and as-sistance
in developing a sales channel for
entrepreneurs. We have worked with 500
new high-growth ventures across Oklaho-ma
over the 13-year history of our company.
FY2011 Reported
Economic Impact
• $89M in annualized revenues
• 79% of revenues obtained outside the state
• $49M in annualized payroll
• 681 current full time equivalent employees
• Average wage of $65,203
• 65 patents fi led and 15 issued
Venture Advisory
Energy &
Environmental
Advanced
Materials
Other
Life
Sciences
IT/Software
23%
11%
43%
6%
17%
OKC
MSA
239
157
104
Tulsa
MSA
Balance
of State
They are true small
businesses, with 78%
employing 10 people
or less and averaging
$65,203 in annual
wages, paying 75%
higher than the state
average of $37,274
Portfolio Companies
by Industry
Portfolio Companies
by Geography
i2E’s team of venture advisors and investment professionals
mentored 111 Oklahoma startup companies over the past
year that are working to provide high-paying jobs, bring new
revenue to the state and create wealth as they build
an innovation-based economy.
$37,274
$65,203
Oklahoma
average
i2E portfolio
4 5
Concept
Profi t
Seed
Start-up
Early
Break Even
2011 Reported Sales
Distribution
International
Oklahoma 21%
9%
70%
Domestic
Our funding resources, concept, seed and angel,
are targeted to help companies move from one
development stage to the next.
From concept through growth, our team of
investment professionals position Oklahoma
companies for funding to match the appropri-ate
capital source for their development stage.
In FY2011, we helped position
36 entrepreneurial companies for
funding with 27 of those, across all
fi ve stages of development, obtain
$35.1 million in private equity.
Portfolio Companies Positioned for
Funding by Development Stage
Concept 8
Seed 9
Start-up 9
Early 6
Growth 4
Maturity
i2E’s portfolio of high-growth companies is producing
technology-related products or services targeted at large
domestic and international markets. Our client companies
continue to report that almost 80% of their revenue is
generated from sales outside Oklahoma. That brings revenue
into the state and creates jobs and wealth for Oklahomans.
2011 Reported Job Growth
2008 2009 2010 2011
State Average 1.4% -1.9% -0.1% 1.2%
i2E Portfolio Companies 26% 36% 20% 22%
6 7
Growth
Promising new technologies were spotlighted
and thousands of dollars in prize money
were awarded in the 2011 Donald W.
Reynolds Governor’s Cup collegiate business
plan competition, but the most important
accomplishment from the competition was its
impact on Oklahoma’s future entrepreneurs.
More than 150 college students from college
campuses across the state took their fi rst
steps down the entrepreneur’s pathway in
the 2011 competition. They formed teams,
researched the market, wrote a business plan
and then pitched it before a panel of investors
and Oklahoma business leaders.
For some, prize money in excess of $100,000
was reward enough for the challenges of the
competition. For others, the awards dinner
represented a momentary celebration as they
prepare to begin a life of building high growth
startup businesses.
Entrepreneurial Development
First place teams in both divisions of the
Oklahoma competition won $20,000
each, while second place earned $10,000
each and third place $5,000 each. They
described new medical technologies
to treat and monitor epilepsy and heart
disease, as well as diagnose infl uenza,
recover oil and gas more effi ciently and
manage complicated land leasing issues.
The Governor’s Cup is underwritten by
the Donald W. Reynolds Foundation and
local sponsors. It is managed by i2E.
8 9
First Place: $20,000
First Place Tri-State: $25,000
CerebroGen Pharmaceuticals
University of Oklahoma
CerebroGen is developing an antibody-based
drug therapy to treat epilepsy.
Building on more than a decade of research,
the company’s drug removes a recently
discovered cause of epilepsy unaddressed
by existing treatments With a regulatory
approval strategy focused on reaching
the market quickly through orphan status,
CerebroGen is committed to bringing a
much-needed therapeutic to Juvenile
Epileptics, followed by a product indicated
for the broader market.
Faculty Advisor: Elaine Hamm
Team Leader: Benjamin West
Team Members: Chase Roberts,
Tobi Olusola, Majed Gharfeh
2011 GOVERNOR’S CUP WINNERS
GRADUATE DIVISION
GRADUATE DIVISION
Second Place: $10,000 IASO
University of Tulsa
Faculty Advisor: Michelle Witt
Team Leader: Stephen Fain
Team Members: Ryan Eslicker, Nathan Garrett
IASO has developed “SPI Gel,” an environmentally
friendly, silica-based enhanced oil recovery system
that seals off inefficient reservoir zones, allowing more
trapped oil to be recovered. Well operators that use
SPI Gel can expect up to a 50 percent increase in daily
oil recovery and decreased expenses. IASO’s mission
is to provide oil recovery systems that allow operators
to conveniently “get more oil” while being safe for
personnel and the environment.
Third Place: $5,000 TerraCoda Software
Oklahoma City University
Faculty Advisor: Kewei Sha
Team Leader: Adele Rehm
Team Members: Alexis Caron, Bridget Poputa-Clean
TerraCoda provides real time enterprise land
management, geo-spatial analysis tools, and
report generation and mapping solutions for the
land, energy, realty, right-of-way procurement,
and municipal markets. TerraCoda’s Landman 360
software will provide full end-to-end visibility into
the leasing process by providing effective tools
that manage the leasing lifecycle. User-friendly
technology combines communication, reporting,
and cost management tools within TerraCoda’s
Software-as-a-Service (SaaS) solution, which will
reduce errors and increase efficiency through real
time reporting and management tools that allow
users to deliver a project on time and on budget.
Entrepreneurial Development
UNDERGRADUATE DIVISION
First Place: $20,000
LumiDX
University of Oklahoma
Faculty Advisor: Jim Wheeler
Team Leader: Amy Henderson
Team Members: Ashley Zumwalt, Mimi Nguyen,
Kaelyn Lu
LumiDX is an infl uenza diagnostics company that offers
ChemLight, a fast, highly accurate tool that harnesses
chemiluminescent technology to offer a cutting edge
innovation in the point-of-care diagnostic market. Lu-miDX
aims to be fi rst to market with diagnostic tests
that are simple, accurate and fast enough to provide
results at the point-of-care.
Second Place: $10,000
Vita Rhythm
University of Oklahoma
Faculty Advisor: Blake Gudgel
Team Leader: Jessica Wills
Team Members: Brett Gudgel, Brittany Myers, Erikka
Roberts
Vita-Rhythm has developed a medical device to treat
heart failure. The AdvaHeart is a left ventricular assist
device that helps eject blood from the left ventricle
of a weakened heart. It is smaller and more easily and
safely implanted in patients.
Third Place: $5,000
Dreamcatcher Services, LLC
Oklahoma City University
Faculty Advisor: Robert Greve
Team Leader: Michael Roselle
Team Members: Feng Dong, David Scott,
Patrick Kennedye
Dreamcatcher Services, LLC has created technology
to apply video-EEG monitoring capabilities to the
medical diagnostic area of epilepsy. The company
has at its disposal a critical mass of talent and indi-viduals
necessary for the effi cient, speedy and prof-itable
application of video-EEG technologies in the
target market.
10 11
OG&E Positive Energy Award
went to Brandon Mikael and
Matthew Huber from the Univer-sity
of Oklahoma, with the assis-tance
of faculty advisor Lowell
Busenitz, based on their work
writing a plan around a tension
and gauge device that saves
time and money for utility com-panies.
The OG&E Positive En-ergy
Award supports Oklahoma
college students in developing
a business plan based on a tech-nology
product in the area of al-ternative
energy, energy storage,
unique energy generation, en-ergy
conservation technologies,
new delivery methodologies, en-hanced
energy controls, and en-ergy
infrastructure optimization
techniques.
Al Tuttle Business Incubation
Award winner TerraCoda Soft-ware
from Oklahoma City Uni-versity.
The award brings a year
of offi ce space and business ser-vices
in one of four participating
Oklahoma business incubators
for the graduate division team
in which at least one of the stu-dents
plans to go forward with
the business.
Oklahoma Business Roundta-ble
Paulsen Scholarships were
awarded to Ashley Zumwalt from
the University of Oklahoma and
Faith Garlington from Oklahoma
State University. The Paulsen
Award, which provides a $5,000
scholarship that can be used to
pay tuition at any Oklahoma col-lege
or university, was named in
honor of Don Paulsen, long-time
President of the Oklahoma Busi-ness
Roundtable. Seven-year impact:
• 26 campuses from across the state
• 950 college students
• 290 innovative ideas
• $1 million-plus in cash awarded
• $40,000 in scholarships
• $85,240 in fellowships
Other 2011 Governor’s Cup Opportunities
In fi scal 2011, Governor’s Cup participants
Entrepreneurial Development
competed for nearly $200,000 in cash,
$10,000 in scholarships and over $40,000
in fellowships and other opportunities.
12 13
Laura Medcalf, senior Computer Science major
at East Central University
Company: Mintiva
Project: Laura managed Mintiva’s social media market-ing
campaigns and provided return-on-investment
analysis on those efforts.
Audrey Metzier, MBA Candidate at Oklahoma City University
Company: Otologic Pharmaceutics
Project: Audrey performed capital development for
Otologic along with project management on competitive
analysis and creation of compelling business presentations.
Anthony Moorehead, MBA candidate at
Oklahoma City University
Company: i2E, Inc.
Project: As a Spring 2011 Business Fellow for i2E,
Anthony worked with i2E’s business advisory and
operations teams on business plan review and
consulting and new i2E initiative projects.
Lucas Rice, junior Industrial Engineering major at
the University of Oklahoma
Company: i2E, Inc.
Governor’s Cup team: UniPHI, 2010
Project: An Investment Fellow for i2E, Lucas worked
with the investment team on fi nancial modeling, market
and competitive analysis and business plan revisions.
Orgil Batsaikhan, MBA and Master of Finance
candidate at the University of Tulsa.
Company: Consolidated Networks Corp.
Project: Orgil developed statistical models to optimize
Consolidated Networks’ technical support services to
school districts and government agencies across the
United States.
Alexis Caron, MBA graduate at Oklahoma City University
Company: Consolidated Networks Corp.
Governor’s Cup teams: Lenio Medical, 2010;
TerraCoda Software, 2011
Project: Alexis develops Consolidated Networks’ partner
relationship program, recruiting software and content pro-viders
for the company’s engineered network solutions.
Arun Kumar Devarakonda, MBA graduate at
Oklahoma City University
Company: WeGoLook.com
Governor’s Cup team: CrowdLure, 2011
Project: Arun assisted WeGoLook.com on launching,
tracking and evaluating multiple new social media
marketing initiatives.
Howard Haines, Ph.D. candidate in Entrepreneurship at
the University of Oklahoma
Company: i2E, Inc.
Project: Howard assisted i2E staff with reporting, pro-cess
design and providing venture advisory services to
its clients.
The i2E Fellows Program was redesigned and expanded as part of the OKC Technology Busi-ness
Launch Initiative funded by the federal Economic Development Administration, the
Greater Oklahoma City Chamber, the Oklahoma Business Roundtable, the Oklahoma Medical
Research Foundation, the Presbyterian Health Foundation and the City of Oklahoma City.
The program provided nine paid Fellowships to eight students, two Spring Fellowships and
seven Summer Fellowships, during 2011. The two Spring i2E Fellows included one MBA stu-dent
from Oklahoma City University and one undergraduate student from the University of
Oklahoma. The seven Summer i2E Fellows were comprised of fi ve client-hosted Fellows and
two i2E-hosted Fellows representing four Oklahoma universities. The Summer i2E Fellows
included two undergraduate students, four MBA students and one PhD candidate including
international students from France, Mongolia and India.
14 15
i2E put on a new online face in fi scal 2011 when it launched
a completely redesigned website that invited users in with
bright graphics, new features and easy navigation.
The site at www.i2E.org added expanded information about
i2E’s many services provided to entrepreneurs, video inter-views
and a new blog to i2E’s presence on the Web.
The new website provides visitors with plenty of reasons to
linger, with in-depth sections on our venture advisory ser-vices,
access to capital and entrepreneurial development.
Users can even read every page of i&E magazine, both cur-rent
edition and back issues, as well as annual reports and
The Entrepreneur’s Path: A handbook for high-growth
companies, which was written and published by i2E during
the past year.
The new i2E blogging presence also invites users to return
frequently to the site. The i2E blog offers insight into pro-grams,
clients and the current state of entrepreneurship,
among other topics that were featured during the year.
Bloggers included i2E team members, i2E Fellows and En-trepreneurs
in Residence, who produced 81 posts in little
more than six months after it was launched in December.
The i2E blog pushed us deeper into the use of social me-dia
during the fi scal year, complementing our active Twit-ter
and Facebook pages. The Twitter feed was often used
to link users back to blogs or news articles posted on the
i2E website. By the end of the fi scal year, the number of
people following i2E on Twitter approached 300.
Over on the Donald W. Reynolds Governor’s Cup page on Face-book,
the number of users who “liked” the page grew rapidly,
with more than 450 followers by the end of fi scal 2011.
i2E’s media activity was not limited to an online presence,
however. We wrote or pitched client stories to media that
resulted in 58 articles published on 23 separate clients in
Oklahoma newspapers during the year. An i2E client also
was highlighted in a USA Today story that profi led people
who left California to do business in Oklahoma.
In addition, another 62 articles were published with news
about i2E initiatives, the Governor’s Cup, i2E Fellows pro-gram
and other related activities.
There is a bottom line to all the various routes that i2E
has taken to establish a presence in both traditional and
social media: We are telling the stories of our clients and
of i2E as we work tirelessly to fulfi ll our mission to nurture
home grown economic development and build wealth in
Oklahoma.
Media and Marketing
16 17
Five of the six Oklahoma tech companies that received
venture capital investment during FY 2011 were i2E
Clients, receiving 90% of the total amount raised.
Angel
Venture Capital
Strategic Partners
Percent Source
of Funding
% of 12 mo.
capital raised
69%
19%
13%
28%
53%
22%
2011 data showed a signifi cant shift in
sources of capital from 2010. Capital
raised from angel investors more than
doubled to 53% while capital raised
from VC investors fell from 65% to 19%.
i2E has been a primary source of concept, seed stage and start-up capital for Oklahoma’s high-growth
companies for more than a decade. Through the state-funded Concept Fund and the
Oklahoma Seed Capital Fund, i2E has provided critical capital to more than 111 early stage ventures
since 1998, ensuring that fi nancing was in place to help them weather the pre-revenue funding gap.
i2E also manages the SeedStep Angels, a network composed of successful Oklahomans who seek
the opportunity to contribute to the success of new entrepreneurs while receiving a high rate of
return on their investment.
Access to Capital
i2E’s portfolio attracts investment to the re-gion
with more than $650 million in funding.
Approximately $580 million of this has been
in private investment from venture capital,
angels and strategic investors participating
in more than 345 fi nancing rounds.
18 19
Since 1999, a total of 107 Oklahoma companies have received
over $10 million in critical concept funding through the OCAST
Technology Business Finance Program.
The fund has also proven to be a success in collecting
and reinvesting repayments. Nearly $4 million, or 37%, of
capital available for new investments has been provided by
repayments from past recipients.
37%
Over its history,
Concept funding has
helped companies
subsequently raise
$253 million in private
capital, creating a
leverage ratio of
29:1 for the state’s
investment
Concept Funding
In Business
All Concept Fund Companies
Concept Funding $10,194,877
In Business $142,377,710
All Concept Companies $253,218,948
Concept Fund
Energy &
Environmental
Advanced
Materials
Other
Life
Sciences
IT/Software
7%
7%
10%
25%
51%
107
Companies Funded
Private Equity Investment
1999-2011
Portfolio Companies by Industry
1999-2011
Entrepreneurs Funding
Entrepreneurs
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
Access to Capital
20 21
Concept Fund
2011 Reported Economic Impact
• $33M in annualized revenues
• 86% of revenues outside state
• $24M in annualized payroll
• 324 full time employees equivalent
• Average wage of $68,910
• 34 patents fi led, 11 issued
We added to the long history of providing critical capital to
Oklahoma’s early stage ventures last year by fi nancing four
companies. The funding brings the total number of companies
receiving funds to 105 since the state-appropriated fund began
operating in 1998. Concept funded companies are creating
new intellectual property, with 163 patents issued and 71 new
products developed.
2011 CONCEPT INVESTMENTS
Hassco is an Oklahoma City-based
Medical-Device startup develop-ing
new medical devices for lapa-roscopic
procedures. The company
currently holds a provisional util-ity
patent on its fl agship device, the
Robotic Articulating Laparoscopic
System (RAL SYSTEM) which will
allow for improved range of motion
and faster, more effective surgeries.
In the US alone, there are approxi-mately
9,500,000 procedures per-formed
annually via Minimally Inva-sive
Surgeries (MIS) while the global
MIS device and instrument market is
estimated at $18.5 billion annually.
Failsafe Hazmat is a Tulsa-based
startup company developing soft-ware
to assist and support companies
that ship hazardous products and
materials. Among a daily 800,000
hazmat shipments, approximately
300,000 are classifi ed as posing ex-treme
risk. In a single year, there were
19,277 US hazmat incidents resulting
in $72,600,000 in property damage,
not including the related litigation
costs. The Failsafe Hazmat software
is designed to keep companies com-pliant
with all domestic and interna-tional
shipping regulations and to
help avoid costly accidents.
Capacity Sports is a Tulsa-based
startup developing mobile concus-sion
management software, begin-ning
with the iOS (iPhone) platform,
to evaluate concussion symptoms in
athletes and reduce the risk of per-manent
brain injury in sports. Driven
by heightened concussion aware-ness,
the Capacity Sports application
will evaluate balance, motor function,
reaction time and memory to better
manage athlete screening and pro-vide
improved information for safe
return to play decisions.
$37,274
$68,910
Oklahoma
average
i2E portfolio
TokenEX is a Tulsa-based Enterprise
Data Security company that helps
merchants reduce their risk and the
cost of Payment Card Industry (PCI)
compliance, thereby enabling them
to focus on their core retail compe-tency,
not Information Technology.
Tokenization is a relatively new con-cept
where a “token” is a surrogate
value that replaces the payment card
number, but unlike encryption, the
token cannot be used to decipher
the real card number. While TokenEx
is not the only provider of tokeniza-tion,
the company has a proprietary
process that provides tokens at the
front-end of the merchant’s opera-tion,
thereby removing a greater por-tion
of the merchant’s systems from
PCI compliance requirements.
Access to Capital
22 23
The Seed Capital Fund provides Oklahoma entre-preneurs
with the capital and support needed to
move a technology from concept to product launch.
The Fund has invested almost $4.4 million in nine
companies. These companies attracted more than
$25 million of co-investment.
Seed Capital Fund
2011 Reported
Economic Impact
• 50 full time employees
• 35% job growth rate
• Average Annual wage of $93,466
• 10 patents fi led, 4 issued
• $3M in revenue
• Nearly $7M in federal grants
2011 SEED FUND INVESTMENTS
Expert TA is a Tulsa-based educational software company
that has developed a powerful partial credit grading sys-tem
for engineering and science based collegiate course
work. The company provides a web-based homework as-sessment
application to engineering, physics, and math
departments.
Real Time Rehab, LLC is a Tulsa-based company servicing
clinicians, physical therapists, chiropractors, sports reha-bilitation
and occupational specialists, by increasing their
ability to improve a patient’s recovery from injury or illness.
RTR has created the industry’s fi rst proprietary Software
as a Service that provides the clinician with both high qual-ity
video and printed materials that instruct a patient on
how to perform exercises at home.
2011 FOLLOW-ON INVESTMENTS
2011 FOLLOW-ON INVESTMENTS
Altheus Therapeutics, Inc. is located in Oklahoma City
and is working to develop therapies to treat the two most
common forms of infl ammatory bowel disease that affl icts
about 1.2 million Americans. Ulcerative colitis and Crohn’s
Disease, are chronic lifelong conditions which signifi cantly
impact the quality of life. The Altheus therapy combines
two FDA approved drugs in a novel way and has been
shown to be highly effective in animal models.
Emotion Media, LLC (EMM), is based in Tulsa and provides
media services to the $7 billion dollar professional pho-tography
market. EMM has developed a proprietary DVD
technology that gives photographers a higher quality, less
expensive way to present and sell their photos. DVDs are
created in a fraction of the time (minutes vs. hours) using
technology automation and include a professional, pro-duction
quality media presentation with music, motion,
and special effects.
Exerbotics, LLC, is located in Tulsa and manufactures ad-vanced
technology equipment and devices for commercial
fi tness applications such as: Collegiate/Professional Ath-letics,
Physical Medicine Rehabilitation and Occupational/
Industrial Medicine. This technology has been engineered,
manufactured and tested in Oklahoma. Exerbotics’ patent
pending technologies are the only real advancement in re-sistance
strength training equipment – ever.
Access to Capital
24 25
SeedStep Angels, founded in 2009
as a source of risk capital for start-up
Oklahoma companies, moved forward
in 2011 with growth, best practice, and
investment initiatives.
January 2011 marked the kickoff
event for the Tulsa chapter of the
SeedStep Angels. Marianne Hudson,
the Executive Director of the Angel
Capital Association, traveled to Tulsa
to give a keynote speech to a dozen
interested Angel investors regarding
the state of the Angel investing
industry. The group formally met
for the fi rst time in February. It has
screened 12 companies, seen six
companies present, and has made an
investment of $200K in DermaMedics.
In Oklahoma City, the focus shifted
to integrating national Angel best
practices within the group. The group
had the opportunity to attend private
events with out-of-state experts – Bill
Botts, Bill Payne and Tom Churchwell
– all of whom are successful
entrepreneurs or venture capitalists.
The SeedStep Angels group also
focused on building relationships with
regional Angel groups surrounding
Oklahoma. These relationships will
be used to syndicate Oklahoma
deals to outside investor networks
to properly aggregate capital in
investment rounds for Oklahoma
companies. Good relationships with
other Angel groups are also key to
sharing best practices and to avoiding
the mistakes other groups have made
in the past. Initially, SeedStep Angels
has been in contact with the Midwest
Venture Alliance out of Wichita,
Kansas. In 2011, the Angels screened
23 companies, saw 10 companies
present, and made three investments.
In 2012, the group looks forward
to continuing to work with the Angel
Capital Association and pursuing best
practices by instituting a formal group
due diligence process, creating a
membership committee, and growing
through recruitment of Angels in rural
areas of Oklahoma.
SeedStep Angels FY2011 INVESTMENTS
DermaMedics has developed and
markets topical anti-inflammatory
products to prevent burns in cancer
patients and patients undergoing cos-metic
procedures, as well as products
to treat a variety of common skin dis-eases
such as psoriasis, acne, eczema
and rosacea, and skin aging.
Expert TA has created Web-based home-work
assessment software that is capable
of human-like grading of complex ques-tions
like those found in engineering,
physics and mathematics courses.
Search and Clear had developed a Web-based
collaborative software platform
for any type of business that depends
upon collaboration and communica-tion,
such as the entertainment industry,
health care, attorneys, information tech-nology,
fi nancial institutions and gov-ernment
contractors.
Access to Capital
Investment 1
Investments 3 26 27
Institutional Governance
i2E strives to have the highest standards of corporate
governance practice and ethical conduct by all
board members and staff. Consistent with those
intentions, i2E has adopted the following charters for
its Board of Directors and Board Committees:
Board of Directors Charter of Governance: Sets and
ensures fi delity to i2E’s mission. Reviews and approves
organizational strategy, goals, plans, and budgets. In
addition the board is charged with establishing policies,
approving major engagements in public policy, and ensuring
that management systems are in place for compliance.
Executive Committee Charter: The function of the
Executive Committee is to exercise powers of the Board
of Directors on matters which arise between regularly
scheduled Board meetings or when it is not practical
or feasible for the Board to meet. This Committee also
reviews and monitors all compensation, benefi t and
human resource policy matters, plus monitors and
evaluates the performance of the corporation’s CEO.
Finance and Audit Committee Charter: The primary
purpose of this Committee is to assist the Board of
Directors in fulfi lling its fi scal oversight responsibilities. It
serves as an independent and objective party to monitor
the integrity ofthe Corporation’s fi nancial accounting
and reporting processes and internal control system.
Nominating and Governance Committee Charter:
The Committee assists the Board in developing and
overseeing the Corporation’s policies and procedures
regarding Board composition and recommendations
of candidates for nomination to the Board.
Investment Committee Charters: The Board engages
two Investment Committees, the Technology Business
Finance Program Committee and The Oklahoma
Seed Capital Fund Investment Committee to consider
and approve applications for investment within the
requirements of the investment programs.
Code of Ethics and Confl ict of Interest
The i2E Code of Ethics and Confl ict of Interest Policy outlines
principles and standards of honesty and ethical accountability
by which all board members and employees agree to
adhere to with respect to the company and its associates.
Board Evaluation
The Board completes a board evaluation survey
annually. The results of the evaluation are compiled and
presented to the full Board for review and discussion.
BOARD OF DIRECTORS
Roy Williams, Chairman, Greater Oklahoma City Chamber
Michael LaBrie, Secretary, McAfee & Taft
Jonathan Adamson, Argonaut Private Equity
Howard Barnett, Jr., OSU - Tulsa and OSU-CHS
Leslie Batchelor, The Center for Economic Development Law
James Bode, Bank of Oklahoma, N.A.
Michael Carolina, OCAST
Bob Craine, TSF Capital, LLC
Steve Cropper
Phil Eller, Eller Detrich, P.C.
Suzette Hatfi eld, Crawley Ventures
David Hogan, HoganTaylor, LLP
Phil Kurtz, Benefi t Informatics
Hershel Lamirand, III, Oklahoma Health Center Foundation
Merl Lindstrom, ConocoPhillips, Inc.
Dan Luton, OCAST
Scott Meacham, Crowe & Dunlevy
Fred Morgan, The State Chamber
Mike Neal, Tulsa Metro Chamber
David Pitts, Stillwater National Bank
Mark Poole, Summit Bank
Stephen Prescott, OMRF
Darryl Schmidt, BancFirst
Sheri Stickley, OKBio
Wes Stucky, Ardmore Industrial Development Authority
Dick Williamson, TD Williamson, Inc.
Duane Wilson, LDW Services, LLC
Don Wood, Norman Economic Development Coalition
i2E TEAM
Tom Walker, President and CEO
David Thomison, VP of Investments
Rex Smitherman, VP of Operations
Sarah Seagraves, VP of Marketing
Wayne Embree, VP of Entrepreneur Services
Tom Francis, Director of Investment Funds
Josh O’Brien, Director of Entrepreneurial Development
David Daviee, Director of Finance
Richard Rainey, Venture Advisor
Mark Lauinger, Venture Advisor
Sonja Wilson, CFO-in-Residence
Scott Thomas, IT Manager
Grady Epperly, Marketing Manager
Kenneth Knoll, Concept Investments Manager
Michael Kindrat-Pratt, SeedStep Angels Coordinator
Casey Harness, Business Analyst
Jim Stafford, Communications Specialist
Jay Sheldon, eMedia Specialist
Katelynn Henderson, Event Specialist
Cindy Williams, Investment Assistant
Jennifer Buettner, Executive Assistant
28
13%
14%
12%
3%
58%
FY2011 Revenues
Other Revenues
OKC Technology Business
Launch Initiative
OCAST Funding
Governor's Cup
Sponsorships & Grants
Fund Management Fees
FY2011 Expenses
12%
12%
67%
i2E Seed Capital, LLC
Other Expenses
Commercialization Services
Donald W. Reynolds Governor’s Cup
Concept Financing Program
6%
3%
Sources of State Funding: OCAST provides funding for i2E Commercialization Services,
the TBFP Concept Fund and is the primary investor in the Oklahoma Seed Capital Fund.
Statement of Financial Position FY2011 FY2010
Assets
Current Assets
Cash & Cash Equivalents 219,589 295,646
Accounts Receivable 191,895 271,695
Certifi cates of Deposit 697,001 474,674
Total Current Assets 1,108,485 1,042,015
Furniture, Fixtures and Equipment, Net 43,580 50,557
Investment in Oklahoma Seed Capital Fund 78,822 78,822
Other Assets 4,551 4,551
Total Assets 1,235,438 1,175,945
Liabilities and Net Assets
Current Liabilities
Accounts Payable 8,474 30,994
TBFP Reinvestment Fund Payable 120 106
Accrued Liabilities 51,462 42,172
Deferred Revenue 63,570 –
Total Current Liabilities 123,626 73,272
Accrued Liabilities, Noncurrent 4,551 4,551
Total Liabilities 128,177 77,823
Net Assets
Unrestricted 312,369 283,418
Unrestricted - Board Designated 794,892 814,704
Total Unrestricted Net Assets 1,107,261 1,098,122
Total Liabilities and Net Assets 1,235,438 1,175,945
i2E FY2011 FINANCIAL REPORTS
Statement of Activities FY2011 FY2010
Revenues
OCAST Funding 1,812,821 2,074,782
Governor's Cup Sponsorships & Grants 402.299 438,625
Fund Management Fees 375,000 220,093
Grants – 46,864
OKC Technology Business Launch Initiative 423,968 –
Other Revenues 101,866 120,784
Total Revenues 3,115,974 2,901,148
Expenses
Commercialization Services 2,081,411 1,852,680
Concept Financing Program 194,487 203,987
i2E Seed Capital, LLC 375,061 220,024
i2E Management Company, LLC 310 28,673
Donald W. Reynolds Governor's Cup 374,917 379,933
Other Expenses 80,649 137,514
Total Expenses 3,106,835 2,822,811
Excess of Revenues Over Expenses 9,139 78,337
Net Assets at Beginning of Year 1,098,122 1,019,785
Net Assets at End of Year 1,107,261 1,098,122
i2E is a 501(c)(3) private not-for-profi t corporation focused on wealth creation by growing the technology-based entrepreneurial economy in Oklahoma. We
are able to accomplish our mission through support from the Oklahoma Center for the Advancement of Science and Technology (OCAST). We would like to
thank OCAST, the state of Oklahoma, and all of our partners for their ongoing fi nancial support. The success of i2E and our client companies also relies on the
contributions of many individuals and organizations who invest their time, expertise, and capital in Oklahoma’s start-up technology companies.
The economic impact statistics used throughout this report are based on client company responses to i2E’s annual impact survey and internal database.
840 Research Parkway • Suite 250 • OKC, OK 73104
2 West Second Street • Suite 210 • Tulsa, OK 74103
800.337.6822 • www.i2E.org
facebook.com/OKGOVCUP
twitter.com/i2E_Inc